Get familiar with 10 A’s of Auto Insurance before purchasing

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Get familiar with 10 As of Auto Insurance before
purchasing
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• Knowledge of the subject decides whether we are
  getting success on it or not. Raw knowledge or an
  improper knowledge leads us to failure in
  business or any other aspect of life. This same
  concept is applied for the insurance policies as
  well if we take policy without knowing how
  exactly it works we will not get its real
  benefits. Every time we hear that before
  purchasing any insurance policy we should read
  the policy document carefully, so that in future
  we dont feel betrayed. So if you are planning
  to buy an auto insurance policy, take some time
  and get familiar with these basic terms.

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Adjuster or claim adjuster

• The key responsibility of adjuster is to make
  investigation of particular casualties. Apart
  from this he is also suppose to clear payments of
  claimed policyholders after evaluation. Commonly
  they are known as claim adjuster in insurance
  term.

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Accident

• Accident is an unpredictable moment. It can
  happen to anyone and anywhere, hence we can say
  this moment is out of control of the insurance
  holders. One can claim for their loss from their
  insurance company and get relief during
  unpleasant situations. How much amount should be
  paid by the insurance company depends upon what
  is observed and the actual value of vehicle.

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Actuary

• Actuaries are the one who perform the calculative
  tasks and hence play an important role in the
  insurance industry. Their work is focused on
  following area.
• To compute premiums plus risk of the insurance.
• To calculate loss reserving, accident
  persistence.
• Plans how to make profits and financial stability
  to company
• Plans to maintain balance so neither the company
  nor the insured person face unnecessary loss.

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Accident frequency

• The term accident frequency is used to determine
  the number of times there is the possibility of
  having accidents. This is calculated by the
  actuary while deciding insurance policy. The main
  objective of this calculation is to bring the raw
  stats which will be helpful to judge the possible
  loss. This whole concept is run on prediction.

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Appraisal

• Appraisal is the estimation of the insured
  property, it is a written agreement. Insurer can
  claim for this in future at the time of loss or
  damage of his property. Although, it depend later
  who so ever will be responsible to pay the claim
  either insurance company or the vehicle repair
  experts.

8
Agent

• Agents are the middle men they are licensed
  representatives of any insurance company. Their
  solo responsibility is to sell the policy of the
  insurance company and in return they get good
  commission.

9
Additional insured

• As the name implies to insure anyone other than
  policyholder, this coverage can be limited for
  one time or can last for the lifetime. At the
  time of accident the additional person or company
  can take the benefits of this policy.

10
Agreed price

• This is an agreement between the adjuster and the
  dealer of the repair body shop. In this they fix
  some price to repair the damage of the vehicle.
  This price can neither be decreased not increased
  in future and both have to work on committed
  price.

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Agreed value

• This term is applicable for the one who own a
  classic car or looking for amendment on the
  current policy related to real estate .In this
  there is a discussion between the car owner and
  the insurance company and they mutually agreed on
  specific amount which will be paid out at the
  time of accident.

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Assigned risk plan

• Assigned risk plan is managed by the state, this
  plans is meant for those people who are not in a
  condition to buy insurance policy either by
  financially incapability or because of their bad
  insurance records.